Swapalease.com reported on Tuesday that lease credit approvals on its site in March rose from the yearly low established a month earlier.
The March rate came in at 69.6 percent, up from 66.7 percent recorded in February. Site analysts noted the 69.6 percent approvals mark is also the level of the last three months, indicating a credit approvals landscape that continues to hover near the “healthy” mark of 70 percent.
The site’s credit approvals rate during the past 12 months stands at 71.7 percent. Prior to March, the approvals rate had continuously dropped from early fall of last year when the approvals rate climbed to approximately 76 percent.
Since then, Swapalease has noticed an increasing rate of credit applications due to more lease shoppers entering the marketplace.
Executive vice president Scot Hall referenced recent data cited by Bloomberg that indicated consumers borrowed more for auto and other non-revolving loans in February, exceeding estimates from economists.
Bloomberg reported consumers borrowed $16.5 billion in advanced credit compared with $13.8 billion in January, signaling an American appetite for credit that keeps rising, according to Hall.
“A consumer that wants to borrow doesn’t always mean they will be approved, which is why our approval rate continues to hover near the 70 percent healthy mark,” Hall said
“Credit worthiness is the most important aspect of getting approved for a car lease, and Swapalease.com expects this number to remain at or near healthy levels for the near term,” he went on to say.
When a lease shopper is interested in taking over someone’s lease, Swapalease.com can match the two parties and helps the “buyer” connect with the lease company to being the credit approvals process.
“If anyone is not approved they can work with a Swapalease.com partner to repair or improve their credit standing before a re-application process,” the site said.